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What should investors do with Adani Ports post Q4 results: Buy, sell or hold?

Here is what brokerages have to say about the stock and company after the March earnings:

May 05, 2021 / 09:29 AM IST
 
 
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Adani Ports and Special Economic Zone (APSEZ) share price shed 3 percent in early trade on May 5, a day after the company reported its March quarter earnings.

On May 4, the company reported a 285.1 percent year-on-year growth in consolidated profit at Rs 1,287.81 crore for the quarter ended March 2021.

Its revenue from operations during the quarter grew by 23.5 percent YoY to Rs 3,608 crore, following a 27 percent growth in cargo volume and a 30 percent rise in port revenue.

Also Read - Adani Ports Q4 profit zooms 285% to Rs 1,288 crore on strong operating performance

Here is what brokerages have to say about the stock and company after the March earnings:

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Citi | Rating: Buy | Target: Raised to Rs 1,000

Citi raised FY22E/FY23E revenue by 5%/10%, FY22E/FY23E EBITDA by 4%/10% and FY22E/FY23E EPS by 7%/14%.

CLSA | Rating: Downgrade to underperform from outperform | Target: Raised to Rs 816 from Rs 770

The management guides for FY22 volume of 310-320 mt versus CLSA estimates of 327 mt. The FY22 volume guidance could disappoint the market.

CLSA downgrading the stock as it offers limited upside following a 35% rally over the last 3 months.

Jefferies | Rating: Buy | Target: Raised to Rs 910 from Rs 670

The Q4 FY21 EBITDA is 17% which is below expectations given lower margins. The EBITDA should recover as volume rises and April 2021 price hikes reflect.

The market share of the company rises to 32%, ROE is back at 20% with asset sweating and a further drop in promoter pledges.

At 09:20 hrs, Adani Ports and Special Economic Zone was quoting at Rs 751.35, down Rs 17.45, or 2.27 percent on the BSE.

The share touched a 52-week high of Rs 885 and a 52-week low of Rs 256.05 on 07 April 2021 and 06 May 2020, respectively.

Currently, it is trading 15.1 percent below its 52-week high and 193.44 percent above its 52-week low.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Moneycontrol News
first published: May 5, 2021 09:29 am

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